EAST PALESTINE, Ohio – Norfolk Southern, a railroad company, has agreed to a $600 million settlement to resolve a series of lawsuits resulting from a train derailment in East Palestine, Ohio last year. The settlement will cover all class-action claims within a 20-mile radius of the derailment site, as well as personal injury claims within 10 miles. The agreement was reached after three days of mediation supervised by a former federal judge.
The February 3, 2023, derailment had a significant impact on the small town and surrounding communities. A total of 38 rail cars, including 11 carrying hazardous materials, derailed, leading emergency crews to burn several cars carrying dangerous vinyl chloride. This action generated thick black smoke, causing concerns among residents over potential long-term health effects from chemical exposure.
Jayne Conroy, one of the lead attorneys representing the people who sued, highlighted the significance of the settlement. She stated, “More than a year after the derailment in East Palestine, Norfolk Southern has agreed to compensate the residents and businesses affected by the incident… the upcoming months will bring financial compensation to those impacted.”
Norfolk Southern emphasized that the settlement does not indicate an admission of wrongdoing on their part. The company stated, “This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities.”
Although the specific number of individuals who will benefit from the settlement remains unclear, the consolidation of 31 lawsuits into a single case last year suggests a potentially significant number. Allocation of the settlement funds will be determined by lawyers appointed by the judge overseeing the case.
In addition to the $600 million settlement, Norfolk Southern had previously agreed to provide $104 million in aid to the affected community. The National Transportation Safety Board is currently in the final stages of its investigation into the derailment. The incident drew attention to the safety of freight railroads and the hazardous materials they carry.
Lawmakers in Washington pledged to enact stricter safety standards for railroads, including regulations for trackside detectors and harsher penalties for violations of federal regulations. However, these efforts have faced obstacles due to lobbying by the railroad industry. Recently, the Federal Railroad Administration implemented a new rule that generally requires a minimum crew of two on freight trains to enhance safety.
Pending court approval, Norfolk Southern anticipates that payouts from the settlement could commence by the end of the year. The company assured that affected residents and businesses will have the freedom to use their share of the settlement funds as they see fit to address the impacts of the derailment.